Before Buying your Minnesota property...first things first!

Before Buying your Minnesota property...first things first!

Reading this article top to bottom will give you an excellent understanding of the pre-approval process for Minnesota property hunters looking for a Minnesota property.

Before you commit yourself to monthly Minnesota property payments on your Minnesota property, consider the following issues. Effective consideration of these important issues may save you money in the long run, BEFORE you buy your next Minnesota property.

1. Don't waste your time looking at thousands of Minnesota properties, when you don't know how much Minnesota property you can afford!

I see this time and time again...one reason for the financial crisis: people got into properties THEY COULD NOT AFFORD! Folks often start looking for Minnesota properties they cannot afford, and before they know how much property their dollar can handle...

You can, and should, get a pre-approvel for a Minnesota Home mortgage before you go looking for a Minnesota property.

Pre-approval for a Minnesota property is a painless process, and can give you complete peace-of-mind when looking for your Minnesota property. It may take up to 3 days, but a local lending institution can provide you with a written pre-approval for you at no cost, no obligation, and a pre-approval can be done quite easily over-the-phone. Your mortgage broker, or Realtor can assist you further, if you don't know where to go for a pre-approval. The bottom line: as long as you have decent credit, you should have no problem getting approved to buy your dream home, or Minnesota property.

A written pre-approval from a lender carried a little more weight than a simple verbal, and is as good as money in the bank. The pre-approval process usually includes your:
- Total Debt Ratio: This is the ratio between all your sources of income against all your debts.
- Cash Reserves: After your loan settlement costs are paid, this is the amount of money left over in your bank account. You'll still need cash to live on until the next paycheck comes.
- Credit History: Looking at your past debts and payment history is a measure of how likely and able you will be to repay your loan.
- Employment History: Not only how much you make, but how stable is your income.
Furthermore, it entails a completed credit application and a certificate, which guarantees you a Minnesota property mortgage to the specified level when you find a Minnesota property, that meets your needs and wants.

2. Know what monthly dollar amount you can afford, before you even start looking for a Minnesota property!

I cannot stress this enough...When you discuss Minnesota mortgage pre-approval with your lending institution, find out for what level you qualify and also pre-assess for yourself to what monthly dollar amount you feel comfortable committing. Your situation may give you a pre-approval amount that is higher (or lower) than the amount of money you would want to pay out each month. Finding out from the lender what your monthly amount is, and what value of the Minnesota property this translates into at today's Minnesota mortgage rates, you will save time and can initiate your Minnesota property search, for a Minnesota property in your price range. Just remember, a Minnesota property mortgage, loan, FHA, or VA loan is a product, just like a car, so the price and terms may be negotiable.

3. Consider your long term goals and aspirations, to determine the type of Minnesota property and Minnesota home mortgage best suit for your needs.

You should ask yourself a number of questions before you commit to a certain type of Minnesota property and mortgage; How long might you own your Minnesota property? What are the current interest rate trends? Are they going up, or down? Might your income change (up or down) in the near future, impacting how much money you can afford to pay to your Minnesota Home? The answers to these and other questions will help you determine the most appropriate Minnesota property for sale and mortgages you should be seeking.

4. Understand your prepayment and payment frequency options.

More frequent payments (for example weekly or biweekly) will trim years off of your Minnesota property loan. By just arranging your payments so that they come out more frequently, you will dramatically lessen the amount of interest charged over the term of the mortgage.

For the same reason, authorized pre-payment of a certain percentage of your Minnesota home mortgage, or an increase in the amount you pay monthly, will have a major impact on the number of years you will have to pay and could shorten your payment term considerably.
These two payment options can cut years off your Minnesota property, and save you thousands of dollars in interest. However, not every Minnesota home mortgage has pre-payment privileges built in, so be sure to ask the proper questions.

5. Is your Minnesota property mortgage assumable?

An assumable mortgage is one that the buyer for your home can take over when you move to your next home. This is a very powerful leverage tool when negotiating the deal, and makes it much easier and more desirable for a buyer to buy your home saving you possible discharge penalties.

6.Get yourself a Minnesota home mortgage broker.

Minnesota property and home loans are available from several types of lenders, commercial banks, mortgage companies, and credit unions. Different lenders may quote you different prices, so you should contact several lenders to make sure you are getting the best price, regardless if you want a reverse mortgage, VA home loan, or even a second mortgage.

You can also get a home loan through a mortgage broker, or online mortgage broker. Brokers arrange transactions rather than lending money directly; in other words, they find a lender for you for your Minnesota property. A broker has access to several lenders can mean a wider selection of loan finance products and terms from which you can choose. Brokers will generally contact several lenders regarding your application, but they are not obligated to find the best deal for you unless they have contracted with you to act as your agent. Consequently, you should consider contacting more than one mortgage broker, just as you should with banks or thrift institutions before you even start looking for your next Minnesota property.



I hope this answers any questions you had about buying a Minnesota property. For more information about buying a property in Minnesota, contact your local lender, or Minnesota property specialist.

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